Trader: Altcoins are in a privileged accumulation phase
A cryptocurrency trader claims that the altcoin market cap chart is flashing a buy signal.
A prominent cryptocurrency trader believes that altcoins could be in a privileged accumulation phase â drawing attention to a buy signal that hasn't spiked this low in over three years.
Altcoins are currently at the sell-your-house-to-buy-more level, crypto trader Luke Martin told his 331,500 X followers in an Aug. 28 post.
The last time the altcoin buy signal came close to this level was in January 2021. Source: Luke Martin
The "altcoin buy signal" chart gives traders an indication of when the overall altcoin market is in a buying moment based on historical data.
Martin said that when bitcoin
BTC
was at this level in the summer of 2020, the price increased sixfold in the second half of the year.
"The price went vertical from $10,000 to $60,000 in the following 6 months," Martin wrote.
Pseudonymous cryptocurrency trader Mags, meanwhile, noted that "altcoin market cap is forming a falling wedge pattern, which is a bullish continuation pattern.
At the time of this article's publication, the total altcoin market cap is $195.07 billion, according to TradingView. MN Consultancy founder Michael van de Poppe highlighted that it is still 47% off its highs" in a post on X on August 25.
The altcoin market cap hit a high of $446.85 billion in November 2021.
Crypto trader Mags has pointed out a possible major shift in the altcoin market cap. Source: Mags
The breakout is going to trigger a nice bullish rally, Mags added.
Among the top 10 cryptocurrencies, Toncoin (TON) has seen the biggest decline
